Traders pushed the US dollar lower this week as they reassessed Trump‘s policies and rising geopolitical risk. Data shows the DXY index fell to 97.1 after briefly dipping to 96.9 on Tuesday (Data shows).
The greenback first suffered a major drop in April 2025 after Trump‘s Liberation Day tariffs. For nine months the dollar has rarely recovered and has struggled to regain the 100 level.
The DXY has lost 9.6% over the past year, reflecting sustained pressure on the currency (Ed. note: the decline is notable among major reserve assets). Commodities such as gold, silver and copper are rising, prompting shifts away from dollar holdings.
Seema Shah, Chief Global Strategist at Principal Asset Management, “There are a number of factors coming together,” stated (stated). “I don’t think this is a ‘Sell America’ trade, but the fundamentals are coming together, and faster than expected.”
Expanding tariffs and trade tensions, including with close allies, have heightened market volatility. The so-called Greenland push prompted some European allies to assist developing countries in shielding their economies.
Those developing countries are selling US dollar-denominated assets to buy gold and diversify central bank reserves. Market participants are favoring gold, silver and copper over holding the dollar.
